Kellogg’s Food Processing Plant, Georgia, United States of America

In June 2009, Kellogg's announced an expansion of its manufacturing plant in south Augusta, Georgia, US.

The investment in the expansion was estimated to be $10m.

Kellogg's Augusta facility previously underwent expansion in 2005 and a $51m bond was approved at that time by the Development Authority of Richmond County.

In June 2011, the US Food and Drug Administration (FDA) issued a warning letter to Kellogg's after an inspection found bacteria in the plant. The inspection carried out in February 2011 indicated several violations of the Current Good Manufacturing Practice regulations for food manufacturers. An inspection carried out in 2010 had also showed presence of the bacteria. Kellogg's is planning to undertake extensive cleaning and testing of the plant to address the concerns raised in the FDA's warning letter.

Kellogg's is one of the leading producers of cereal and other convenience foods. In addition to cereals, Kellogg's produces cookies, crackers, toaster pastries, cereal bars, frozen waffles and meat alternatives.

The company started in 1906 and now distributes its products in more than 180 countries.

"Kellogg’s is the fourth largest manufacturing employer in Augusta."

Kellogg’s operates under the brand names Keebler, Pop-Tarts, Eggo, Cheez-It, Club, Nutri-Grain, Rice Krispies, Special K, All-Bran, Mini-Wheats, Morningstar Farms, Famous Amos, Ready Crust and Kashi.

Expansion

Kellogg’s is the fourth largest manufacturing employer in Augusta. The expansion of the plant created 250 jobs, taking the total number of employees to 750.

In order to streamline operations at the facility, the company laid off an undisclosed number of employees in November 2009 under its K-LEAN (Kellogg’s Lean, Efficient, Agile Network) programme. The company said it was optimising its manufacturing network and standardising its processes.

Equipment worth $5m has been installed at the facility, with some items transferred from a Kellogg’s manufacturing plant in Charlotte, North Carolina.

The company has plans for future expansion at the facility. Details of the expansion have not been announced.

New products

The Augusta facility produces cookies and snack packs including Keebler and Murray cookies, Kashi and Mother's brand products.

Financing

Kellogg's issued tax-exempt bonds worth $30m. The Development Authority of Richmond County approved the bonds on 19 November 2009 for expansion of the Augusta facility.

Location

The cost of living in Augusta is 78% of the national average. It has a population of about 194,000. The Richmond Area has a labour force of 175,970, of which 166,000 are employed.

Augusta-Richmond County comes under Tier 1 in Georgia’s job tax credit categorisation. Employers can benefit from tax exemption of $4,000 for every job created for five years.

Augusta Corporate Park provides infrastructure and grading assistance to the manufacturing units.

Food processing

Augusta’s food industry comprises 23 firms including Canada-based Castleberry’s Food, which manufactures meat products, and FPL Food, which processes beef products. Coca-Cola also has a plant in the county.

The food processing industry in Georgia has more than 800 small, medium and large-scale companies located throughout the state. The industry is the largest manufacturing sector in Georgia and has a major impact on the state's economy. The food processing industry in the state provides employment for 70,000 people.